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Regulator runs check on Friends' operations

Julie Power

The state government's charity regulator is investigating allegations that fund-raising by the Friends of the Historic Houses Trust of NSW could have breached laws.

The decision follows an independent audit by Deloitte Australia, which warned the non-profit volunteer association supporting the Historic Houses Trust that it risked losing its fund-raising licence.

"The Office of Liquor, Gaming & Racing was investigating allegations made against [the] Friends to ensure compliance with the Charitable Fundraising Act," said a spokesman for George Souris, the minister with responsibility for charitable fund-raising.

Tim Duddy. Photo: Paul Mathews

The Friends' charitable licence expires on December 2, 2015, but a licence can be withdrawn where an association has breached NSW laws.

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On Thursday, Fairfax Media reported that the Friends, formed 25 years ago to support the trust and its 12 colonial houses, was deadlocked in a divisive leadership battle. Two people – curator Elinor Wrobel and anti-coal seam gas activitist Tim Duddy – claim to be the chairperson, each with their own executive committees.

The leadership row follows the decision by the Friends' executive committee under Mrs Wrobel to commission an audit of the organisation's finances from Deloitte.

The audit found the Friends' fund-raising costs exceeded its profits, and it had failed to disclose this.

It recommended that the Friends formalise its relationship with the statutory authority , the Historic Houses Trust of NSW, which provides the organisation with free office space at its headquarters in the historic Mint building on Macquarie Street.

On Thursday members of the Friends and the director of the trust, Mark Goggin, urged a resolution of the leadership deadlock.

Former history teacher Peter Robertson, of Stanmore said there was a need to "clear the air" by holding an extraordinary general meeting to elect a new committee.

"The 'old' committee is now highly politicised and would, I believe, find it difficult to maintain the trust of many members," said Mr Robertson, who had nothing but praise for the quality of the management and the quality of the events organised.

"Unfortunately, the 'new' committee may well live under the cloud that it was elected at a meeting held in very unusual circumstances." he said, referring to the annual meeting that was cancelled at the last minute after the Deloitte report was received.

In a letter circulated to the trust's foundation and some trustees, Mr Goggin urged the Friends' leadership to urgently address the issues from the Deloitte report and resolve the leadership before it damaged the trust's reputation.